The Commercial Broker's Guide to Construction
Commercial brokers representing healthcare tenants need to understand that medical and dental build-outs cost 2–3x more than standard office TI. In Tulsa's market, medical TI allowances run $80–$140/SF and dental requires $120–$180/SF due to plumbing, medical gas, and equipment rough-in. Construction timelines are also longer — 90–120 days for dental, 120–150 days for medical, and 6–9 months for oral surgery — all starting after permit issuance.
Everything a Tulsa commercial real estate broker needs to know to better serve healthcare and commercial tenants through their build-out process.
Understanding TI Allowances
Tenant improvement allowances are typically negotiated as a dollar amount per square foot of leasable area. In Tulsa's current market, TI allowances for medical office range from $80-140/SF, while standard commercial office runs $50-90/SF. Dental offices require $120-180/SF due to plumbing, medical gas, and equipment rough-in requirements. Help your clients understand that TI allowances that sound generous may still leave them funding a significant gap — especially for healthcare tenants with specialized build-out needs.
Construction Timelines for Healthcare Tenants
Medical and dental construction takes longer than standard commercial build-outs. A standard office TI in an existing shell runs 60-90 days from permit. A dental office runs 90-120 days. A medical office with exam rooms, nurse stations, and specialized MEP runs 120-150 days. An oral surgery center can run 6-9 months. These timelines start after permit issuance — add 30-60 days for plan review in Tulsa. Factor construction time into your lease commencement negotiations so your client isn't paying double rent during build-out.
Lease Language That Protects Your Clients
Key lease provisions for construction: (1) Landlord work vs. tenant work — be explicit about who delivers what before TI commences. (2) Permit contingency — include a clause that delays rent commencement if permits are delayed beyond a defined period. (3) TI disbursement — understand the landlord's inspection and disbursement process before your client starts spending. (4) Allowance for healthcare-specific items — some landlords exclude medical gas, plumbing upgrades, or electrical service increases from TI reimbursement.
What to Look for in a Healthcare GC
Not every commercial contractor can build a dental or medical office. Look for: (1) ASSE 6010 certified medical gas installers on staff or under contract. (2) Direct experience with dental chair rough-in, operatory plumbing, and equipment coordination. (3) Knowledge of NFPA 99 and relevant healthcare codes. (4) References from dental equipment vendors and practice management consultants — they see the work at handoff. (5) A superintendent who has built at least 10 dental offices, not a GC who built one and called it a specialty.
Representing Healthcare Tenants
Healthcare tenants require a broker who understands their world. Key considerations: parking (medical uses need 5:1,000, dental even more), patient access and ADA compliance, utility capacity (dental uses 200A 3-phase minimum per operatory), HVAC requirements (dental sterilization rooms need dedicated exhaust), and signage visibility for patient-facing practices. The right building for a CPA is the wrong building for a dental group — understand the operational requirements before you show properties.
Working with UDGOK on Your Deals
UDGOK is a resource for brokers representing healthcare and commercial tenants. We'll provide free budget consultation during your deal-making process so your clients understand true build-out costs before signing a lease. We participate in landlord-tenant negotiations to help structure TI allowances appropriately. And when the lease is signed, we deliver on time — which protects your reputation as the broker who brought a great tenant that executed without drama. Call us early, not after the lease is signed.
Frequently Asked
Dental tenants in Tulsa should target $120–$180/SF in TI allowance. Standard commercial office TI is $50–$90/SF, but dental construction requires under-slab plumbing, medical gas rough-in, radiation shielding, and specialized HVAC that drive costs significantly higher. Even a 'generous' commercial TI allowance may leave a dental tenant funding a $50,000–$150,000 gap.
Standard commercial office TI takes 60–90 days from permit. Dental office TI takes 90–120 days. Medical office with exam rooms and specialized MEP runs 120–150 days. Oral surgery centers can take 6–9 months. Add 30–60 days for permit review in Tulsa before construction starts.
Look for ASSE 6010 certified medical gas installers, direct experience with dental operatory plumbing and equipment coordination, NFPA 99 code knowledge, references from dental equipment vendors, and a superintendent who has built at least 10 dental offices. Not every commercial GC can build healthcare.
Healthcare tenants need higher parking ratios (5:1,000 vs. 3:1,000 for office), 200A 3-phase electrical minimum per dental operatory, dedicated HVAC exhaust for sterilization rooms, ADA-compliant access beyond standard commercial requirements, and strong signage visibility for patient-facing practices.